Allowed

Canara Bank v. Shrinivasa

DRT27 Oct 2025OA/1227/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application for a recovery certificate. The bank proved an agricultural term loan default via documentary evidence. Defendants appeared ex parte. Court awarded reduced interest and recovery against personal assets and scheduled property.

What did the court decide?

Recovery certificate drawn for Rs. 30,96,027/- with 6% simple interest from filing date, recoverable from personal assets and scheduled mortgaged property.

Canara Bank versus Shrinivasa — Specific Performance | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1227/2023

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BETWEEN:

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Canara Bank Arasikere Branch, P.b.no. 62, BH Road, PP circle, Arasikere, Dist. Hassan, Karnataka – 573 103

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Through its Chief Manager Sri. Krishan Sighn …APPLICANT

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AND:

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Sri. Shrinivasa S/o. Dyavegowda Aged about 26 years R/o. Javenahally village, kasaba hobli, Arasikere Tq, Hassan Dist., Karnataka – 573 128

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Sri. Javanappa S/o. Dyave Gowda Aged about 24 years, R/o. Javenahally village, kasaba hobli, Arasikere Tq, Hassan Dist., Karnataka – 573 128 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates Defendants : Ex parte

OA-1227/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 30,96,027/- (rupees thirty lakhs ninety six thousand and twenty seven only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants availed an agriculture term loan of Rs. 4, 90,000/- (rupees four lakhs ninety thousand only) on 19.09.2005.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents along with simple mortgage deed.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loans accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for

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OA-1227/2023

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the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 11.07.2024.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-6 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA

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claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains

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unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facility as stated in the OA,

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OA-1227/2023

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1227/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 30,96,027/- (rupees thirty lakhs ninety six thousand and twenty

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seven only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally

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and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be

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recovered by proceeding against schedule property. Properties

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OA-1227/2023

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schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for balance

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of October, 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA-1227/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sharada Bai K H, W/o. Arasaraju, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 30.08.2005 and sanction letter dated 19.09.2005
A2	Simple mortgage deed dated 09.09.2005
A3	Memorandum of agreement for agricultural loans dated 19.09.2005
A4	Letters revival dated 12.09.2008, 08.09.2011, 04.09.2014, 21.08.2017 and 10.08.2020
A5	Legal notice dated 25.04.2023
A6	True extract of statement of accounts pertaining to the defendants loan account no. 0781856003593

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shrinivasa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shrinivasa

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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